Employees who are rendered jobless will be entitled to unemployment benefits if a draft Bill before the National Assembly sails through.
The Unemployment Insurance Authority Bill, sponsored by Ikolomani MP Bernard Shinali seeks to provide benefits to employees who become unemployed or their beneficiaries.
Appearing before the Budget and Appropriations Committee on Thursday, Shinali noted that the Bill proposes the establishment of an Unemployment Insurance Fund to which both the employer and employee will contribute.
"The object of the Fund is to provide benefits to employees who become unemployed or their respective beneficiaries in order to cushion them against harmful socio-economic effects of unemployment," he explained.
He added that sources of monies to the Fund will include contributions from both employers and employees, appropriations by Parliament from the National Budget, funds provided by a county government as well as donations and grants.
The draft Bill proposes the establishment of the Unemployment Insurance Authority as a corporate body with a Board comprising a chairperson and nine other members.
According to the Bill, functions of the Authority will include; administering the Fund and advising the Labour Cabinet Secretary on unemployment insurance policies and legislation.
It adds that the Authority will also be advising both levels of government on policy matters on unemployment and unemployment insurance while also facilitating the implementation of such policies relating to unemployment insurance.
The draft Bill also provides for the appointment of staff to the Authority to help it effectively discharge it.
Additionally, the draft Bill provides that certain cadre of public officers shall be excluded as may be prescribed in regulations by the Cabinet Secretary taking into consideration the advice of the Salaries and Remuneration Commission and Cabinet Secretary responsible for matters relating to finance.
